The single family home neighborhood of Kapahulu-Diamond Head is very chop suey in that there is a wide variety of different types of dwellings. For research purposes, this neighborhood is geographically defined by the Honolulu Board of REALTORS® as Tax Map Key , Zone 3, Sections 1 through 4.

There's been quite a bit of activity in this neighborhood and the median price has been stable. During 2007, a total of 206 homes were sold in this area which was down 10.4% from the 230 sales in the prior year. For the first 2 months of 2008, there were 25 sales compared to 33 in the same time period of the year earlier, a decrease of 24.2%.

The median price paid for a house was $852,000 during the January-February period this year, compared to $775,000 in the same 2 months of 2007, an increase of 9.9%. For the entire last year, the median price was $816,800 which was a 5.4% increase from the 2006 full-year price of $775,000. The highest price paid for a home in 2007 was $7,550,000, while the lowest price of last year was $300,000. The minimum amount paid in 2006 didn't change much, it was $299,000, but the maximum was significantly higher at $10,800,000.

The speed of sales increased in 2007 by 2 days, going from 34 days in 2006 to 36 days last year. In the first 2 month of this year, the speed has risen to 40 days.

For further information about recent activity in your specific neighborhood, check out the information available on the Honolulu Board of REALTORS® website www.HiCentral.com or contact a REALTOR® in your area.

Isn't it interesting that our City Council is now discussing tying property taxes to the CPI (full story) instead of valuations? This just happens to come at a time when real estate prices have stopped accelerating but the CPI in Honolulu is rapidly increasing.

Why wasn't this change proposed when home prices were rising and the CPI was flat?

I think this tactic is nothing short of a desperate attempt by certain members of the Council to hide a tax increase so they can continue to spend above their (our) means.

What do you think?

The Federal Reserve today lowered the federal funds rate by .75%, going down to 2.25%. While this is a major cut, markets expected a full percentage point drop.

Expect an immediate reduction in Adjustable Rate Mortgage (ARM) financing costs and, I believe, lower fixed rate mortgage costs in the near future.

The Fed made this pretty drastic move to assist with the ballooning, worldwide financial crisis - do you think it will help?

The Federal Reserve meets tomorrow and the betting is on further rare reductions of .75% or even a full point drop. Lesser know is the surprise move by the Fed yesterday (Sunday!) lowering its lending rate to banks by a quarter percent, going from 3.50% to 3.25%.

Also yesterday, Bear Stearns, the 80+ year-old investment behemoth, tanked and was sold in a quickly approved deal to JP Morgan for $2 per share. This stock at one time near $160!

This activity is all related to the sub-prime problem which, until recently, looks to have spared Hawaii. It's gotten so large, however, that all consumer credit is apparently going to be in jeopardy, from credit card debt to auto loans. And, of course housing.

Until this financial meltdown filters through the economy, look for more stringent requirements for getting a loan, nationally and locally. The good news, however, is that rates will probably go lower to attract borrowers.

The Ala Moana-Kakaako neighborhood has seen many new condominium projects in the last few years, as well as a revitalization of commercial properties. For research purposes, this neighborhood is geographically defined by the Honolulu Board of REALTORS® as Tax Map Key , Zone 2, Sections 3.

Sales in this neighborhood changed very little in the last 2 years, declining only by 7 units from 2006 to 2007. Last year, 2007, there were 342 sales compared to 349 in the prior year. In the first 2 month of this year, there were 59 sales, only a drop of a single sale from the year earlier.

Prices have gyrated wildly in this neighborhood. For the 2007 full year, the median price paid for a condominium was $530,000, a whopping 47.2% increase from the 2006 median of $360,000. Note that this data excludes new units, most of which are high-priced luxury units, so this increase is probably linked to the quick resale in these new buildings. The highest price paid in 2007 for a condo in this area was $4,500,000, which was $600,000 less than the $5,100,000 paid in 2006.

The Days on Market indicator showed properties changing hands with a median market time of 51 days last year, a one week speed decrease from the 2006 statistic of 44 days.

For further information about recent activity in your specific neighborhood, check out the information available on the Honolulu Board of REALTORS® website www.HiCentral.com or contact a REALTOR® in your area.